Investing.com — Morgan Stanley downgraded Harley-Davidson (NYSE:HOG) to “Equal-Weight” on limited upside despite expected improvements in affordability in 2025.
Analysts noted that absolute affordability remains high, while muted consumer confidence may constrain demand recovery.
“We struggle to have conviction in a bull argument of normalized earnings power as prolonged affordability challenges,” said Morgan Stanley (NYSE:MS) analyst adding that it could indicate a structural shift in the demand curve that may be difficult to overcome with current cost efficiency plans.
The downgrade follows a tough 2024 for the powersports sector, with HOG and peers underperforming the broader market by 53% amid negative retail trends and inventory de-stocking.
